The main topics shaping discussions in the European longs market this week have largely focused on the approval of new European Union safeguard measures earlier this week, the widespread weakness in demand, and the first rumors regarding producers’ summer shutdowns.
In the Italian market, prices have remained unchanged, with rebar deals still being concluded at €440/mt ex-works base (€700/mt ex-works including regular extras) against offers at €460/mt ex-works base (€720/mt ex-works including regular extras). Producers’ inventories remain at high levels, while sales – at least in the domestic market – are reported at very low levels.
However, several sources have noted that, at the same time, the Balkan region, particularly countries such as Bulgaria and Romania, is emerging as an outlet market for producers who are struggling to place material domestically.
The situation is also stagnant in the wire rod segment, where prices are becoming increasingly unattractive due to their high levels. At the same time, some sources have reported that wire mesh prices have reached up to €775/mt ex-works, albeit with negligible sales volumes.
EU safeguard measures, approved earlier this week, have also been a key topic among market participants. Several market players consider them too restrictive and still incomplete. According to others, these measures could structurally alter the dynamics of European import markets, as some countries that were previously relying on imported material – particularly from Turkey – may now face increasing difficulties.
As for Germany, it is worth noting the ongoing maintenance shutdown at a major rebar and wire rod producer, which had already been announced and is expected to last approximately 2–3 weeks. Another factor weighing on the German market is logistics, as steelmakers appear reluctant to accept transport cost increases requested by haulers in order to protect their margins, resulting in slower delivery times.
Finally, import markets have remained broadly stable, as several exporting countries are preparing for the Eid al-Adha holiday (May 26–30). As a result, offers from Turkey have remained unchanged amid stable exchange rates, standing at €565/mt CFR for rebar and €570/mt CFR for wire rod, while offers from Egypt have been reported at €550-560/mt CFR for rebar and €570-575/mt CFR for wire rod. In addition, a Northern European processor is said to have purchased a 10,000 mt wire rod cargo from Algeria for delivery in early July.
€1 = $1.16
